First Trust NASDAQ Global Auto Index ETF (CARZ)

Problem solved? General Motors (GM+1%) announces safety enhancements to the vehicle structure and battery coolant system in its Chevrolet Volt model in response to a NHTSA investigation. The car maker notes the steps are "further protection," saying the Volt has always been safe to drive.

Global auto makers compete to show off their latest models at the New Delhi auto expo with an eye on one of the largest untapped markets. Though car sales in India were up for the first time in five months last November, industry forecasts only call for 2%-4% growth in sales in the financial year through March. Unveiling new models at the show: NSANY.PK, HYMLF.PK, TM, F, GM, SZKMY.PK.

BMW (BAMXY.PK) expects the global premium car market to grow over 8% this year vs. predictions of 4% growth for the broader auto market. The European market will likely remain flat, with growth opportunities coming from the U.S. and China.

Fisker Automotive recalls 239 of its high-priced Karma cars in the U.S. due to a defective battery from supplier A123 (AONE). The firm's stumbling entry into the plug-in EV sports car market follows similar well-documented electric-car battery headaches at GM.

General Motors (GM+0.2%) hires a consulting firm to find ways to save on white-collar costs as its laments a 5% operating margin that trails rivals Ford and Hyundai. At least one analyst sees any moves by GM as only amounting to a "rounding error," with Hyundai's 10% margin nearly out of reach due to the exchange rate benefits and efficiencies the firm is able to realize.

TrueCar follows up J.D. Power's strong estimate for auto sales, saying new-car sales for December will come in 8.1% higher Y/Y and up 24.4% M/M on an unadjusted basis. For 2012, TrueCar estimates 13.8M vehicles will be sold - in-line with J.D. Power's forecast and slightly higher than the 13.6M Edmunds expects.

Bret Jensen identifies three auto stocks that are set to pop in 2012 based on low valuations and technical factors. Each of his picks - F, TRW, and GM - trade well-below the consensus price target of analysts, as well as showing solid potential for global growth.

The NHTSA launches an investigation over rust issues with older vans and minivans built by General Motors (GM) and Ford (F). At issue for the pair of carmakers is if design defects contribute to excessive rust and potential safety problems on 2003 Chevrolet Express vans and 2004 Ford Freestar and Mercury Monterey minivans.

Der Spiegel: "German car manufacturers BMW, Daimler (DDAIF.PK), and Audi even had to shorten the usual break in production during the Christmas season because they have so many open orders to fill." Why all this kerfuffle over the slowing European and world economies?

Daimler's (DDAIF.PK) Mercedes-Benz plans to boost output by 13% next year to 1.4M cars, according to a report from Automotive News Europe. The carmaker sees its total passenger car output increasing to about 1.67M in 2013.

J.D. Power estimates that U.S. auto sales will hit 13.4M on an annual rate in December, up 7.2% Y/Y. A forecaster with LMC Automotive sees the automotive industry building on the strong end to 2011 next year, as long as it can overcome a "summer selling slowdown" and post a full year of healthy sales.

The dark shadow cast on the electric car industry by the misadventures with Chevrolet Volt batteries following crashes gets a bit of a lift out of Japan with word that tsunami-ravanged Nissan (NSANY.PK) Leafs showed no post-trauma battery problems. "Considering how they were tossed around and crushed, we think that is a very good indication of the safety performance of that vehicle," notes a Nissan exec.

General Motors (GM+3.3%) recalls about 20K Cadillac SRX crossover vehicles due to a potential transmission defect. The carmaker's JV in China will recall 9,862 vehicles in the region, while GM pulls back 8,879 in the U.S.

Honda (HMC) plans to ramp up production in North America to combat a strong yen that cuts into the cost of manufacturing locally. The carmaker looks to increase its production in the region to over 2M cars and trucks a year from a mark of 1.29M vehicles in 2010.

Honda (HMC+3.5%) expects U.S. sales to jump up 23% in 2012 with dealer inventories getting restocked to normal levels following this year due to natural disasters. The carmaker is in recovery mode after its U.S. market share fell off to 9% from 10.5% and the just-released Civic model was blasted by critics.

Investment Objective/Strategy - The First Trust NASDAQ Global Auto Index Fund is an exchange-traded fund. The investment objective of the Fund is to seek investment results that correspond generally to the price and yield, before the Fund's fees and expenses, of an equity index called the NASDAQ OMX Global Auto Index.

There can be no assurance that the Fund's investment objectives will be achieved.

* The index is a modified market-capitalization weighted index that includes securities of companies that are classified as an Automobile Manufacturer.

* To be included in the index, a security must meet the following criteria:
o listed on an index-eligible global stock exchange,
o have a minimum worldwide market capitalization of at least $500 million,
o have a minimum three-month average daily dollar trading volume of $1 million.

* The index employs a modified market cap weighting methodology in which larger companies receive a larger index weighting. The index weighting methodology includes caps to prevent high concentrations among larger stocks.